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Advance/Refund affecting tax paid?

  • 22-02-2024 9:40am
    #1
    Dublinandy3
    Registered Users, Registered Users 2 Posts: 492 ✭✭


    Hi All,

    I have emailed the revenue about this but given they have a 20 to 25 working day turnaround I thought I'd try to pick the brains of boards while I wait.

    Last month I noticed my employer had incorrectly deducted me 241 euros each month for a tax saver travel ticket I didn't purchase. When I told them about it they gave me a 500 euro advance and told me they would reclaim the 500 euro advance and refund me me what they took on my next pay cheque, which came in today. They did just that, which is all good but I noticed that the tax I have paid this month is 290 euro higher on my paye, 29 euro higher on my prsi and 29 euro higher on my USC. Those figures are rounded.

    Why would this be? I have other deductions of a pension, lpt and a shavesave scheme but those figures haven't changed.

    I'm just a little perplexed, my employers said they can't help with tax queries, which is understandable and expected, I just don't understand it at all. I checked the revenue in the myaccount section and non of my tax details seem to have changed. The only thing I can think of is that the advance/refund thing seem to have impacted it, but I just don't see how.


    Am I missing something obvious here? Has there been a massive change in how we're taxed? I already was above the tax threshold for 40%, but even if I wasn't, it would have only been the bit I went over that got taxed extra, wouldn't it?



Comments

  • #2
    namenotavailablE
    Registered Users, Registered Users 2 Posts: 59,703 ✭✭✭✭namenotavailablE


    The travel saver ticket deductions would have reduced your pay each month for PAYE, PRSI and USC. You'd have saved 40% PAYE, 4% PRSI and some percentage of USC on the monthly deduction.

    If the employer reversed these deductions in payroll, these savings would also have been reversed- based on the figures you give, I'm guessing that the deduction was taken for 3 months where you didn't buy the tickets, so 40% PAYE rate x 241 x 3= €290 PAYE had to be collected. It is the same principle for PRSI and USC. This is a once-off cost- you shouldn't see this happening in subsequent months.

    Free Excel net pay calculator- https://taxcalc.eu/monthlyss/Employee%20PAYE%20calculator.xlsm



  • #3
    Dublinandy3
    Registered Users, Registered Users 2 Posts: 492 ✭✭Dublinandy3


    https://www.boards.ie/discussion/comment/121801895#Comment_121801895

    Thank you!



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